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Last updated: Wednesday, February 21, 2018

Please let us about operating tem of Commercial bank

Posted: Tuesday, July 29, 2008

On 29 April 2008, the Governor of State Bank issued Decision No. 13/2008/QD-NHNN on operating system of Commercial bank. Accordingly, the Commercial bank shall be allowed to open new branches and offices one year after its operation in case of satisfying the following conditions: (i) have profit- making in the year before asking for opening new branches, offices; (ii) ensuring safety requirement in bank activities; (iii) debt classification, meeting requirements on risk reserve; and (iv) the rate of bad debt is not exceed to 3 per cent compare with total of outstanding debt at the time of request to open offices, branches.

The Commercial bank shall be allowed to open new branches and offices in foreign country in case of satisfying the following conditions: (i) have operational duration of at least five years; (ii) have profit- making in 03 consecutive years prior to the year asking for opening new branches, offices; (iii) have no administrative fines within 01 year prior to the year asking for opening new branches, offices; (iv) supervisory/inspective agencies of the country where open offices, branches have co- operative agreement in inspection, supervision with supervisory/inspective agencies of Vietnamese bank.